Jefferies Raises PT on SAIC to $20 (SAI)

Jefferies is out with its report today on SAIC (NYSE: SAI), raising its price target from $19 to $20.

In a note to clients, Jefferies writes, "With better than expected earnings power in FQ4, combined with a very strong 1.4x book:bill, we feel the SAI investment case is better than sentiment and valuation would suggest. With more fixed price work expected, combined with divestiture of certain commercial business, we feel margin headwinds are offset-able. Continued stock buybacks and bolder M&A activity could also be catalysts."

At the time of posting, shares of SAI were trading pre-market at $16.89, down 0.41% from Wednesday's close.